Seeing Machines Limited (LSE:SEE) reported expected first-half FY2026 revenue in the range of US$23.4 million to US$24.0 million, slightly below the previous year as non-recurring engineering revenues declined. However, annualised recurring revenue increased to US$14.0 million, while adjusted EBITDA losses narrowed due to reduced operating costs.
Cash balances stood at US$3.4 million as of 31 December 2025. Liquidity was subsequently strengthened by a US$14.1 million royalty payment received after the reporting period. Management is targeting positive adjusted EBITDA in the third quarter and the second half of FY2026, supported by cost efficiencies and growing recurring income.
The automotive segment continued to expand in advance of the July 2026 implementation of the EU General Safety Regulation. The number of vehicles on the road equipped with the company’s Driver Monitoring System (DMS) and Occupant Monitoring System (OMS) rose 67% year on year. Production volumes increased 62%, while automotive royalty revenue climbed 43% to US$9.0 million.
The company also secured new and expanded automotive programs in Europe and Japan. Additional growth initiatives include the rollout of impairment detection technology and a next-generation cabin perception platform. Meanwhile, rising Guardian aftermarket orders and the establishment of a new Future Mobility Group are expected to position Seeing Machines to benefit from increasing regulation-driven demand and expanding royalty streams.
Despite operational progress, the outlook remains constrained by ongoing losses and negative operating cash flow, alongside weak short-term technical momentum. These challenges are partially balanced by management’s forward guidance, which highlights anticipated regulatory tailwinds and cost measures aimed at achieving cash-flow breakeven.
More about Seeing Machines
Seeing Machines is an AIM-listed company headquartered in Australia, specialising in AI-powered, vision-based monitoring systems designed to enhance transport safety. Its technology integrates artificial intelligence, embedded processing and advanced optics to monitor driver gaze and cognitive state in real time. The company serves automotive manufacturers, commercial fleets, off-road operators and aviation customers with safety-focused monitoring solutions.
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